Hey there! As a fellow outdoor enthusiast, I know you’ll appreciate this comprehensive lowdown I’ve put together on the recent merger between two of the biggest names in outdoor gear and apparel – Bass Pro Shops and Cabela’s.
This multi-billion-dollar deal combined two powerhouse retailers into one outdoor retail giant, but what does it mean for customers like us? I’ll give you the scoop on how it all went down, the rationale behind it, what has changed for customers, and what we can expect from this outdoor retail empire of the future. Let’s dive in!
A Match Made in Outdoor Heaven
First, let’s look back at how these household brands rose to prominence. Bass Pro Shops and Cabela’s have remarkably similar origin stories.
The Bass Pro Shops Story
Bass Pro Shops has humble roots tracing back to 1972, when avid angler and outdoorsman Johnny Morris started selling fishing tackle out of the back of his father‘s liquor store in Springfield, Missouri. Sensing a need for affordable, quality fishing gear, Johnny‘s business took off.
In 1978, the first official Bass Pro Shops outlet opened up in Springfield. This launched the beginning of the retail empire as we know it today.
With its awe-inspiring megastores, Bass Pro Shops became known as the outdoor enthusiast‘s theme park. Each location is stuffed to the brim with boats, RVs, hunting rifles, camping gear, apparel and accessories. The experiential stores also feature in-store lakes and aquariums stocked with live fish species from the local area.
Over nearly 50 years, Bass Pro Shops has grown from humble beginnings into a retail giant with over 200 locations across North America.
The Cabela’s Story
Much like Bass Pro, Cabela’s origins trace back to a family operation dedicated to bringing quality outdoor gear to the masses.
In 1961, Dick Cabela started selling fishing flies through the mail from his kitchen table in Chappell, Nebraska. Along with his wife Mary and brother Jim, Dick pioneered the direct marketing of outdoor equipment.
The Cabela’s catalog, mailed to thousands of homes across the U.S., became a must-read for hunters, anglers and outdoor enthusiasts. Customers fell in love with the wide selection of hard-to-find gear and old-fashioned customer service.
Capitalizing on its catalog success, Cabela’s opened its first retail showroom in Sidney, Nebraska in 1970. Eventually expanding to dozens of giant destination stores, Cabela’s became known for its elaborate in-store conservation displays, massive aquariums, and rows upon rows of gear for the outdoor connoisseur.
Two Industry Titans
Though they grew up mere states away from each other, Bass Pro Shops and Cabela’s charted parallel courses in becoming leading retailers of outdoor equipment and apparel.
For over 50 years, each company cultivated loyal followings of outdoor lovers attracted to the breadth of merchandise, competitive prices and excellent customer service.
But in the fast-moving world of modern retail, even the biggest players need to adapt. With e-commerce giants like Amazon disrupting the status quo, joining forces seemed like the best way for these two industry titans to stay on top.
Why Bass Pro Went “All In” to Buy Cabela’s
In October 2016, the deal was announced – Bass Pro Shops agreed to acquire rival retailer Cabela’s for a whopping $5.5 billion. But why did Bass Pro bet the farm to reel in Cabela’s?
Here are the key reasons behind this match made in outdoor retail heaven:
1. Expand Their Footprint
At the time of the merger, Bass Pro Shops operated over 100 stores and Cabela’s had around 85. While both had ambitious growth plans, consolidation gave them a quick path to having over 180 retail locations practically overnight!
Expanding its brick-and-mortar footprint gives the unified company enormous scale and reach across North America to drive customer traffic.
2. Enhance Online Offerings
One common challenge both companies faced was adapting to the rise of e-commerce. Shoppers were increasingly going online to buy gear.
Acquiring Cabela’s allowed Bass Pro to leverage the company‘s strong foundation in direct-to-consumer channels like catalogs and e-commerce. This omnichannel capability gave customers the flexibility to shop however they want.
3. Diversify Brand Portfolio
Though Bass Pro and Cabela’s have plenty of crossover, each brand offers unique products and specialties that the other doesn’t.
Cabela’s brought premium private label offerings and specialty departments like its Gun Library. Meanwhile, Bass Pro delivered its value-focused Ascend brand and expertise in boating.
Blending these complementary brand strengths makes for a more diverse and robust merchandise selection.
4. Pool Resources and Talent
With duplicate corporate roles and infrastructure, the combined company could consolidate overhead costs and optimize operations. Consolidating purchasing and distribution alone was expected to save over $40 million!
Bass Pro also gains Cabela’s experience in direct marketing, finance and private label development. It’s a perfect marriage of talent.
5. Compete Against the “Big Box” Retailers
In the past, specialty chains didn’t have to worry too much about mass retailers like Walmart. But with retailers like Walmart and Amazon expanding into outdoor categories, they became a real threat.
Gaining scale helps specialty retailers like Bass Pro leverage buying power, pricing and assortment to stay competitive. It’s the kind of advantage they need to stand out in a crowded field.
Acquiring Cabela’s gave Bass Pro Shops the size, resources and capabilities to thrive as an outdoor specialty retailer against the “big box” chains.
Cabela’s Sells, But Not Cheaply
For Cabela’s, joining up with Bass Pro Shops offered synergies and growth potential in a challenging market environment. But they weren’t about to go cheap!
After negotiating for months, Bass Pro agreed to pay $65.50 per share for Cabela’s. All said, the deal valued Cabela’s at a whopping $5.5 billion.
Cabela’s secured a big payday for shareholders, including founding family members. But Bass Pro also felt Cabela’s unique offerings justified the premium price.
Braving the Elements: Life as One Company
Like any good wedding, the real work began after the merger deal was sealed. Combining these two industry juggernauts presented immense challenges.
Let’s look at how Bass Pro Shops and Cabela‘s navigated the hard work of integration.
Consolidating the Operation
With redundant corporate staff in areas like Finance, Marketing, HR and Supply Chain, Bass Pro consolidated and eliminated overlapping roles. Integrating departments, systems and processes achieved big cost savings.
They also combined warehousing and distribution networks to drive efficiencies across the supply chain. Leveraging the pooled purchasing power, they negotiated lower costs from vendors.
Closing Redundant Stores
Since the merged company had two stores co-located in some markets, Bass Pro closed select underperforming Cabela’s locations. Liquidating redundant retail space helped optimize their footprint.
At the same time, they renovated and rebranded a handful of Cabela’s stores as Bass Pro Shops locations. This helped create a omnichannel network with regional balance.
Blending Brands at Retail
Rather than segregating brands, Bass Pro Shops integrated Cabela’s products into existing stores. This provided customers with expanded, complementary merchandise offerings all under one roof.
Cabela’s private label brands take prime shelf space alongside Bass Pro’s value outdoor lines. Shoppers can also find specialty departments like Cabela’s Gun Library inside Bass Pro stores.
Uniting E-Commerce
Online, the company merged Cabelas.com into BassPro.com to create a single destination with the full breadth of merchandise.
Cabela’s loyalists can still find their favorite gear, now with expanded shipping and delivery options through Bass Pro’s infrastructure.
They also combined loyalty programs, allowing customers to earn and redeem rewards universally.
Life After “I Do” – The Journey to Integration
Transitioning from competitors to comrades didn’t happen overnight. But through savvy leadership, Bass Pro and Cabela’s created a unified company positioned for the future of retail.
After weathering the integration storm, where do things stand today? Let’s explore the outcomes for customers.
What the Future Holds for Outdoor Enthusiasts
If you’re like me, you probably wondered what this merger would mean for us outdoor gear fanatics.
While the inner workings of retail consolidation don’t excite most customers, the benefits we see in stores and online do matter.
Here’s a look at what customers like us can expect going forward:
Unmatched Product Selection
As competitors, Bass Pro and Cabela’s had similar product assortments with a few category exceptions. As one company, customers now have access to the absolute best selection of hunting, fishing, camping, footwear and apparel under the sun!
Whether I’m gearing up for a backcountry elk hunt or stocking my bass boat, the megastore has everything I need from trusted brands. The breadth is unrivaled.
Blended Private Label Brands
I was thrilled to see Cabela’s premium private label goods like Zonz apparel and Freighter canoes become available at my local Bass Pro. These exclusive products complement Bass Pro’s value-focused brands like Ascend.
With both owned brands under one roof, customers get the best of both worlds!
Omnichannel Convenience
Between brick-and-mortar and digital, we can shop the Bass Pro and Cabelas portfolio however we want.
I love checking out new gear in person but also appreciate the convenience of ordering online and using in-store pickup. This flexibility is what today’s customers demand.
Expert Advice and Service
While some big chains focus only on price and volume, the depth of expertise at Bass Pro and Cabela’s stores goes unmatched.
Whether I’m talking trolling motors with the boat shop staff or discussing shotgun fit with the gun counter guys, they know their stuff. That specialist knowledge enhances the shopping experience.
Signature Attractions and Experiences
Beyond merchandise, these stores offer memorable experiences like indoor archery ranges, aquariums, and pro shops. At the Cabela’s location near me, I can even test-drive ATVs and RVs!
These experiential elements turn gear shopping into a destination event. That’s hard for e-commerce sites to replicate.
Seamless Supply Chain
With Cabela’s vast direct-to-consumer infrastructure plus Bass Pro’s stores and dealers, customers like us benefit from wider selection, faster shipping, and omnichannel inventory.
I love having access to a nationwide selection that ships directly to my doorstep from the closest warehouse. And if I need something urgently, I can still swing by a store. That’s convenience!
The Bottom Line
While mergers make retail investors and analysts giddy, customers like us care primarily about selection, service and experience.
On those fronts, the Bass Pro Shops and Cabela’s tie-up looks like a win for us outdoor junkies.
We can look forward to an expanded assortment of our favorite gear brands, flexible omnichannel shopping, experiential stores, and top-notch expertise.
And by blending strengths across retail, e-commerce and the supply chain, this outdoor retail giant will compete successfully in the years ahead.
So while the inner workings of mergers don’t excite most of us, the outcome for customers here seems promising. We outdoorsy folks can get stoked about that!
Let me know if you have any other questions about this historic retail merger. I’m always happy to chat gear, offer buying tips, or weigh in on the latest industry developments.
In the meantime, be sure to take advantage of all the goodness that Bass Pro and Cabela’s combination has to offer. See you out there on the trails!
Yours in the outdoors,
Lillie
